MUFG: Thai Baht Vulnerable to Energy Shock, High Oil Prices
MUFG strategist Lloyd Chan warns that the Thai Baht is particularly exposed to prolonged Middle East conflict and elevated oil prices due to Thailand's large net oil and gas deficit, weakening terms of trade, and low domestic yields.
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MUFG's Lloyd Chan argues that the Thai Baht (THB) faces heightened vulnerability amid a prolonged Middle East conflict and sustained high oil prices. Thailand's large net oil and gas deficit, combined with weakening terms of trade, puts additional pressure on the currency. Relatively low domestic yields further undermine the Baht's appeal, making it one of the more exposed Asian currencies to the current energy shock.
Source: FXStreet Forex News